1. What are tax attributes on Form 982?

Tax credits that are available to taxpayers who operate businesses in energy, pharmaceutical, and mining industries.

Deductions or credit carryovers that reduce either taxable income or tax liability.

Tax deductions that are available to recent graduates of medical and dental school who agree to work in rural or blighted urban areas.

Student loan debt cancellation (that is exempt from income) for recent graduates of medical and dental school who agree to work in rural or blighted urban areas.

2. A business-use car held long-term and sold at a LOSS is treated as what section property?

179.

1231.

1245.

1250.

3. What form or worksheet is recommended to be completed by hand before the tax return is completed for a taxpayer with possible cancellation of debt income using the insolvency rules?

The Statement of Income from Discharge of Indebtedness.

Form 982.

Form 1040, Schedule D.

Form 4797.

4. Which taxpayer is NOT subject to the uniform capitalization (UNICAP) rules?

Jackson, who raises exotic animals that he sells to pet stores.

Micah, who makes quilts that she sells at craft fairs and flea markets.

Amy, who sells cosmetics, which she acquires for resale, and whose gross receipts average $6,000 per year.

Dave, who operates his own photography studio.

5. What action may be taken (subject to certain rules) when the IRS offsets a married couple's joint refund because one spouse defaulted on a federally-guaranteed student loan?

The non-defaulting spouse should request innocent spouse relief.

The taxpayers should submit a joint offer in compromise.

The defaulting spouse should request a certificate of non-attachment.

The non-defaulting spouse should request relief as an injured spouse.